Making a good product is one job. Selling it is another, and many Singapore business owners would rather hand that part to someone else. There are several ways to do it: consignment, distributors and resellers, sales agents, outsourced sales teams, or a done-for-you selling service. They work very differently, suit different businesses and come with different costs and risks. This guide explains each one in plain English, including the rules that apply to home-based businesses.
In short
- Consignment: a shop displays your stock and pays you after it sells, minus its cut. You keep the risk of unsold stock.
- Distributor or reseller: they buy your stock, usually at wholesale prices, and resell it. You sell in bulk at a lower margin.
- Sales agent: sells on your behalf for a commission, without owning the stock.
- Outsourced sales team (SDR, lead generation, appointment setting): mostly for business-to-business sales, finding and booking meetings with business clients.
- Done-for-you selling: a partner lists, promotes and sells your products, services or vouchers to consumers for you.
- Home-based food businesses can’t supply cafes, restaurants or shops, so consignment and distribution aren’t options for them.
The options at a glance
| Option | Who owns the stock | How they’re paid | Best for |
|---|---|---|---|
| Consignment | You, until it sells | A share of each sale | Crafts, fashion, packaged goods in physical shops |
| Distributor | The distributor | Buys at wholesale, earns the margin | Brands that want shelf space across many shops |
| Reseller | The reseller | Buys at a discount, sells at retail | Products with steady demand and room for a margin |
| Sales agent | You | Commission per sale | Higher-value products and corporate orders |
| Outsourced sales team | You | Monthly fee, sometimes plus results-based fees | B2B services and software selling to companies |
| Done-for-you selling | You | Terms agreed upfront | Consumer products, services and vouchers |
1. Consignment
With consignment, a shop puts your products on its shelves but doesn’t pay for them upfront. When an item sells, the shop keeps an agreed share and pays you the rest. Unsold items are returned to you or collected at the end of the agreement.
Good for: handmade crafts, fashion, accessories and packaged goods that benefit from being seen in a physical shop.
Watch out for: slow payment, damaged or lost stock, and the shop’s cut. Get a written agreement covering the share, payment timing, who is responsible for damage and how long items stay on display.
Home-based food businesses: SFA’s rules say home-based food businesses can’t sell to licensed food establishments such as restaurants, cafes or hawker stalls, or at temporary fairs. Placing homemade food in a cafe on consignment would break those rules. See our guide to home-based business licences.
2. Distributors and resellers
A distributor buys your products in bulk and supplies them to shops, supermarkets or other businesses. A reseller buys from you, or from a distributor, and sells to consumers. Either way, they own the stock once they buy it.
Good for: brands with consistent production, proper packaging and labelling, and margins that can absorb a wholesale discount.
Watch out for: lower margins per unit, minimum order quantities, and less control over how your product is priced and displayed. For food, distribution usually means producing in a licensed facility rather than at home.
3. Sales agents
A sales agent sells your products on your behalf and earns a commission on each sale. Unlike a reseller, the agent doesn’t buy or hold the stock. You fulfil the orders the agent brings in.
Good for: higher-value items, corporate gifts and bulk orders, where one sale is worth the commission.
Watch out for: agents who represent many brands and focus on whichever earns them most. Agree the commission rate, territory, exclusivity and how long the arrangement lasts in writing.
4. Outsourced sales teams: SDRs, lead generation and appointment setting
Sales outsourcing means hiring an external company to run part of your sales process. In Singapore this is mostly used for business-to-business (B2B) selling:
- SDRs (sales development representatives) research and contact potential business clients by phone, email and LinkedIn.
- Lead generation finds and qualifies businesses that might buy.
- Appointment setting books meetings between those leads and your own salespeople.
Good for: B2B services, software and corporate suppliers with a high value per client.
Not a fit for most consumer businesses: a cold-calling team won’t sell cakes, massage vouchers or gift sets to the public. For those, you need to reach consumers where they shop and search.
5. Done-for-you selling
Done-for-you selling is for businesses that sell to consumers and want a partner to handle the selling end to end. The partner creates the listing, presents the product, promotes it to shoppers and sends you the orders or bookings. You keep your stock and deliver as usual.
Good for: spas, massage outlets, salons, studios, food businesses and shops selling products, packages or service vouchers.
Watch out for: unclear terms. Agree the price, what’s included and how orders reach you before anything goes live.
This is what Shiokly Sells For You does. We touch up your photos, write the listing, put it in front of Singapore shoppers, including through free Google Shopping listings, and send you the orders. We don’t use influencers. See why.
Which option should you choose?
- You make physical products and want shop shelves: consignment to start, distributors once you can produce at scale.
- You sell high-value or corporate orders: a commission-based sales agent.
- You sell to other businesses: an outsourced sales team for lead generation and appointment setting.
- You sell to consumers and want someone to handle it: done-for-you selling.
- You run a home-based food business: sell directly to consumers online. Compare the options in where to sell homemade food.
Whichever you choose, get the terms in writing. For more on pricing so there’s room for a partner’s share, read pricing against Taobao and Temu.
FAQ
What is consignment selling?
A shop displays and sells your products without buying them first. When an item sells, the shop keeps an agreed share and pays you the rest. Unsold items are returned.
What’s the difference between a distributor and a sales agent?
A distributor buys your stock and resells it, so it takes on the stock risk and earns a margin. A sales agent doesn’t buy stock. It sells on your behalf and earns a commission.
Can a home-based food business sell through cafes on consignment?
No. SFA’s rules don’t allow home-based food businesses to sell to licensed food establishments such as cafes, restaurants or hawker stalls.
Is sales outsourcing worth it for a small consumer business?
Usually not. Outsourced sales teams focus on B2B leads and appointments. Consumer businesses get more from being found where shoppers search, or from a done-for-you selling partner.
Sources
Want Someone to Sell for You?
Shiokly sells products, services and vouchers on behalf of Singapore businesses. We agree the terms with you first, then list, promote and sell. See Shiokly Sells For You or WhatsApp us.